Life Science REIT has announced plans to launch an initial public offering on the Alternative Investment Market (AIM) of London Stock Exchange.
The firm, which has appointed Ironstone Asset Management Limited as its Investment Adviser, will issue 300 million ordinary shares of £0.01 each, becoming the first UK REIT focused on life science properties.
The company will seek to invest in a diversified portfolio of properties across the UK which are typically leased or intended to be leased to tenants operating in, or providing a benefit to, the life sciences sector including wet and dry laboratories, offices and co-working space, manufacturing and testing facilities, and data centres.
The Company said that it has identified a £445 mln pipeline of projects of which £305 mln is under exclusivity or in an advanced state of negotiations.
The Company is targeting a net asset value (NAV) total return in excess of 10% per annum and an initial dividend yield of 4% per annum, with an intention to grow to 5% per annum in the early years.
Claire Boyle, Chair of Life Science REIT, said: 'We are delighted to announce the proposed IPO of London’s first REIT focused on the growing life sciences sector, driven by the emergence of a favourable investment environment formed by combination of long term macro and specific, occupational and investment trends aligning. The UK’s increasing focus on life science spending has led to increased demand for high quality real estate in key locations, a focus that has been sharpened by the global experience of the Covid-19 pandemic. Quality Life Science Properties are centred on a small number of key geographic locations in the UK where supply is constrained, demand is high, vacancy is low and rents are rising, offering attractive opportunities for investment.'
Life Science REIT expects to publish the Prospectus in connection with the Issue later this week. Admission is expected in mid-November.
